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Common Pitfalls of Purchasing
Whether you are buying for the first time, looking to upgrade
your current residence, or are relocating to a new area, many questions
often arise. Every day purchasers make life-altering decisions with less
than 20 minutes of dedicated viewing and investigation. Any errors that
occur as a result of a lack of planning can seriously hamper your financial
standing, and even unduly affect the long-term happiness of your family.
To outmaneuver and avoid grave errors, take into account the following
common pitfalls when purchasing:
- Paying too Much
- Too Much of a Fixer Upper
- Wrong Type of Neighborhood
- Buying Outside of your Budget
- Over or Underestimating your Housing Needs
- Retirement & Condo/Apartment Living
- Overlooking Schools and Children
- Yard Maintenance
- Muicipal By-Law Restrictions
1) Paying Too Much
Without the aid and assistance of a professional Real Estate Agent, purchasers
often pay far more than fair market value. It is not uncommon to hear
horror stories where thousands of dollars were wasted because the market
value was not known. Market values in different cities and different areas
within the same city can be substantially different. What you sold your
last home for does not necessarily equate to pricing structures in your
new neighborhood. Your Realtor will know what is locally considered good
value for your home investment dollar. If you are relocating to a new
city, engage the services of a local Realtor who understands the market
trends and the specifics of the area in the city you are interested in.
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2) Too Much of a Fixer Upper
You’ve heard the stories or maybe even made the comments yourself: "it’s
only superficial", or "it won’t take too much money to fix that"
or "we can renovate on the weekends" or "I didn’t realize
it would take a structural repair artist!!" Nightmares happen when
you take on more than you can handle. Purchasing a fixer upper can equate
to replacing everything and you still end up with a very expensive brand
new old car.
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3) Wrong Type of Neighborhood
Once you locate a home that appears to fit your needs, take a second look!
If you originally viewed the property on a weekend, drive by during a
weekday rush hour. It is the responsibilirty of your Realtor to check
with the local municipal authorities to see if a major road expansion
plan is in the works, one that might produce a backyard oasis of incessant
noise. Investigate airport extensions and shopping center improvements.
Heavy traffic imposing itself on your serenity can destroy your solitude.
Also consider your outdoor lifestyle. Do you hold family barbeques, enjoy
sitting outside, or invite family and friends to vacation with their recreational
vehicles in your backyard? In some cases, excessive traffic noise can
hamper a quiet conversation while sitting in your backyard. Are playgrounds
important?? Do you want your children to walk to school? Are there shops
nearby? If at all possible take an hour and go for a walk in your prospective
new neighbourhood. It may be an hour very well spent.
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4) Buying Outside of your Budget
Most of us are all familiar with more funds going out than what we have
coming in. Some people want the best regardless of whether they can afford
it or not. A good Realtor will council their buyer to consult a mortgage
broker or banker before they start looking for a house. House rich and
cash poor is not the way to experience life! On the opposite end of the
scale is purchasing a home that offers less function and features than
what you really wanted. Inevitably, you end up reselling and moving again.
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5) Over or Underestimating your Housing Needs
A $10,000+ mistake can occur when you purchase with only the immediate
timeframe in mind. You opted for no family room, and 3 months later are
delighted to learn your first child is on the way. Or your children all
leave home in the same year and now you find yourself rambling around
in empty rooms! On the other hand, when parents downsize too early, they
sometimes find their adult children have rebounded with a few extra additions!
Consider all your options and plan carefully.
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6) Retirement & Condo/Apartment Living
You are both retired from the workplace and are now contemplating that
a smaller residence may be just what the doctor ordered. No more high
maintenance yard work, shoveling snow or too many rooms to keep clean
sounds very appealing. Determine your needs realistically: Are the retirement
activities in line with your lifestyle? Are there local amenities close
by? Do you prefer a 55+ building? Is the condo council open to family
members, especially children, vacationing with you? Can you have small
pets? Are you in the same age group as the current residents? How many
parking stalls are there? Is building security to your liking? What are
the noise restrictions? Can you have a barbeque and can hanging baskets
and lawn chairs decorate your balcony? These are just a few of the questions
that require answers before you make a purchase decision. Discuss these
questions with your Realtor.
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7) Overlooking Schools and Children
Is your new home within walking distance of your children’s new school?
Is this school still taking students or is their enrollment full? Is there
bus service? In many communities, both established and new, the closest
school may not be taking new students and your children may have to travel
by bus to a school in another area. Are there activities close by for
your children? If these are areas of concern for your family be sure to
let your Realtor know so he or she can do the research and provide you
with the latest information on which you can base your decisions.
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8) Yard Maintenance
What is required to upkeep your new home? Do you want to spend the time
necessary to keep everything in top notch condition? Are you on a corner
lot with sidewalks requiring more shoveling? Is there a swimming pool?
Or fish pond?
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9) Municipal By-Law Restrictions
Educate yourself! Consult with your Realtor and local municipal authorities
to learn of any abnormalities and restrictions that may apply to the property.
Do you intend on converting the basement into an in-law suite? Can you
run your commercial business from home? Can you park your recreational
vehicle in that three car driveway or in the back alley??
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Also see the Buyers Guide
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